Section 6 Unit 1: Conveying Title

How many covenants are there in a warranty deed?

6

Which type of deed contains the strongest and broadest form of guarantee of title?

Full covenant and warranty deed (a.k.a. general warranty deed)

Which five of these options are true of a dedication by deed? a. Can be used for green spaces or easements b. can be used as private land c. Benefits the community and the landowner d. Voluntarily given by the owner e. Potential use as a tax write-off

a. Can be used for green spaces or easements c. Benefits the community and the landowner d. Voluntarily given by the owner

Acknowledgment is a key element to a deed. Why should a grantee always receive an acknowledged deed? a. It provides the grantee title protection against other purchasers of the same property from the grantor. b. It provides the grantor title protection against other purchasers of the same property from the grantee. c. It constitutes the transfer of the title between grantor and grantee.

a. It provides the grantee title protection against other purchasers of the same property from the grantor. Yes! An acknowledged deed provides the grantee some protections against the same grantor selling the same property twice.

Voluntary alienation includes which of the following? a. Kali intentionally transfers her property to Sandy. b. Laura took possession of Nancy's property by adding a previous claim to her current claim. c. Maurice's property is taken from him because he failed to pay his property taxes. d. Steve died without a will

a. Kali intentionally transfers her property to Sandy.

Which covenant requires the grantor to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing? a. The covenant of further assurances b. The covenant of seisin c. The covenant of the right to convey d. the covenant of warranty

a. The covenant of further assurances

There are no encumbrances against the title, except those in the public record. a. against encumbrances b. right to convey c. seisin

a. against encumbrances

Given to an individual a. deed of gift b. dedication by deed c. both

a. deed of gift

Be conveyed orally a. essential b. not essential

a. essential

Be in writing a. essential b. not essential

a. essential

Contains the grantor's signature a. essential b. not essential

a. essential

Includes an adequate legal description a. essential b. not essential

a. essential

Names a grantee who is living a. essential b. not essential

a. essential

Names a grantor who is legally competent and has reached the age of majority a. essential b. not essential

a. essential

Names and positively identifies the grantor a. essential b. not essential

a. essential

The deed must be delivered to the grantee or an agent of the grantee. a. essential b. not essential

a. essential

Bill's uncle gave him his property with a full covenant and warranty deed, without Bill having to pay for it. a. gift b. not a gift

a. gift

Jake inherited his property from his deceased father. a. gift b. not a gift

a. gift

Releases any rights of the grantor to the property to the grantee but does not offer any warranties to the grantee a. quitclaim deed b. bargain and sale deed c. full covenant/warranty deed

a. quitclaim deed

A deed must be acknowledged or have an oath of a subscribing witness. a. required b. not required

a. required

A notary should acknowledge the grantor's signature. a. required b. not required

a. required

In most states, this is what a bargain and sale deed with a covenant is called. a. special warranty deed b. executor's deed c. general warranty

a. special warranty deed

A deed is a written and signed legal document that transfers ownership from one person to another. a. true b. false

a. true

A deed is an instrument of conveyance. a. true b. false

a. true

The grantee is the person receiving the title. a. true b. false

a. true

The grantor is the person who transfers the title. a. true b. false

a. true

The grantor defends the title to the grantee against all others' lawful claims. a. warranty c. quiet enjoyment c. further assurances

a. warranty

Which one of these is an example of unrecorded interest? a. A deed that was corrected because of spelling error b. A neighbor's right to cross over someone else's property to get to his own c. A renter's two-year lease d. A seller's right to use a property until escrow closes

b. A neighbor's right to cross over someone else's property to get to his own

Through the divorce process, Gail was granted ownership of the couple's vacation timeshare. Gail is ready to sell the timeshare but discovers that her ex-husband Daniel's name is still on the deed, creating a cloud on the title. What should Gail do? a. Ask Daniel to sign a general warranty deed so the new buyers enjoy all the deed covenants. b. Ask Daniel to sign a quitclaim deed to release his ownership share. c. File a quiet title suit against Daniel. d. Purchase a title insurance policy for the new owners to cover any eventual ownership issues.

b. Ask Daniel to sign a quitclaim deed to release his ownership share.

Which one of these clauses in a deed meets the requirements for act of conveyance? a. For good and valuable consideration b. Does hereby bargain, grant, deed, and convey c. Free and clear with Warranty Covenants

b. Does hereby bargain, grant, deed, and convey

Stu is buying Freddie's property. What must occur for the transfer of title to take place? a. Freddie and Stu must sign the deed. b. Freddie must intend to convey the property to Stu. c. stu must convey the deed d. stu must sign the deed

b. Freddie must intend to convey the property to Stu.

A deed is said to be an instrument of conveyance. What does this mean? a. It proves ownership of a vehicle used for conveying passengers. b. It's a written document used to convey property title from one person or entity to another.

b. It's a written document used to convey property title from one person or entity to another. As an instrument of conveyance, a deed is used to convey title to a property from one person or entity to another.

Which one of these best describes the purpose of consideration? a. To indicate that property is being transferred b. To provide evidence that something of value is being exchanged c. To provide a formal description of the item being transferred d. To identify any deed restrictions to which the property is subject

b. To provide evidence that something of value is being exchanged

May come with or without covenants of warranty a. quitclaim deed b. bargain and sale deed c. full covenant/warranty deed

b. bargain and sale deed

Given for public use a. deed of gift b. dedication by deed c. both

b. dedication by deed

May be private land used to make a public park a. deed of gift b. dedication by deed c. both

b. dedication by deed

Your client is selling his late mother's home. This is likely the type of deed he'll use to convey ownership. a. special warranty deed b. executor's deed c. general warranty

b. executor's deed

A deed must be recorded to validly transfer property from a grantor to a grantee. a. true b. false

b. false You got it! In some cases, an unrecorded deed may still transfer a property from the grantor to the grantee and be valid. It does leave the door open for potential challenges later, though.

Frank was able to enforce certain warranties on his deed in court against the previous owner. a. gift b. not a gift

b. not a gift

Sarah got a great deal on her property at an auction. a. gift b. not a gift

b. not a gift

A public official must deliver the deed to the grantee. a. essential b. not essential

b. not essential

Contains the grantee's signature a. essential b. not essential

b. not essential

Includes the grantee's address a. essential b. not essential

b. not essential

Includes the grantor's address a. essential b. not essential

b. not essential

Names a grantee who has reached the age of majority a. essential b. not essential

b. not essential

Names a grantee who is legally competent a. essential b. not essential

b. not essential

The deed must be officially accepted by the grantee. a. essential b. not essential

b. not essential

The grantee must state that the deed is accepted. a. essential b. not essential

b. not essential

The grantee must appear before a public officer. a. required b. not required

b. not required

The grantee has possession and won't be disturbed in the use or enjoyment of the property. a. warranty b. quiet enjoyment c. further assurances

b. quiet enjoyment

Which one of these deed types is commonly used to clear a cloud on title? a. full covenant and warranty deed b. quitclaim deed c. executor's deed d. referees deed e. bargain and sale deed

b. quitclaim deed Quitclaim deeds are commonly used to clear clouds on a title.

The grantor has legal capacity to convey the title and has the title to convey. a. against encumbrances b. right to convey c. seisin

b. right to convey

In which type of deed does the grantor imply good title and possession of the property, even though the deed does not contain assurances for the period prior to the grantor's ownership?

bargain and sale deed

The grantor holds the title specified in the deed. a. Against encumbrances b. Right to convey c. Seisin

c. Seisin

Select the statement that correctly exemplifies the covenant term. a. The covenant against encumbrances is the grantor's guarantee that he or she owns the property being conveyed. b. The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property. c. The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on. d. The covenant of warranty promises that the grantor has the capacity to convey title.

c. The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.

Which of these would void a deed intended to convey property? a. The grantee is not mentally competent. b. The grantee's signature is not acknowledged. c. The grantor is not mentally competent. d. The transfer includes no monetary consideration.

c. The grantor is not mentally competent.

Given without consideration a. deed of gift b. dedication by deed c. both

c. both

Legally binding once accepted a. deed of gift b. dedication by deed c. both

c. both

Provides the strongest and broadest form of guarantee of title a. quitclaim deed b. bargain and sale deed c. full covenant/warranty deed

c. full covenant/ warranty deed

The grantor will correct any defects in the title being conveyed. a. warranty b. quiet enjoyment c. further assurances

c. further assurances

As a real estate professional, you'd most likely want your buyer to receive this type of deed for the most trouble-free title. a. special warranty deed b. executor's deed c. general warranty

c. general warranty

Which covenant term means that the grantor has legal capacity to convey the title and has the title to convey? a. further assurances b. quiet enjoyment c. right to convey d. warranty forever

c. right to convey

Under which covenant does the grantor assure the grantee that there are no known liens or restrictions on the property that are not already part of public record or the deed itself?

covenant against encumbrances

Under which covenant does the grantor agree to perform any acts necessary to correct any defect in the title being conveyed?

covenant of further assurances

Under which covenant does the grantor assure that the grantee will not be disturbed in the use of the property because of a title defect passed on by the grantor?

covenant of quiet enjoyment

Which covenant says that the grantor has the legal capacity to transfer title and has the title?

covenant of right to convey

Which covenant says that the grantor holds title to the property as specified in the deed?

covenant of seisin

Which covenant that states that the grantor will defend the title against the lawful claims of others?

covenant of warranty

What deed warranty guarantees that the seller is the actual owner of the property being conveyed and has the right to convey it? a. Covenant against encumbrances b. Covenant of further assurance c. Covenant of quiet enjoyment d. Covenant of seisin

d. Covenant of seisin

Which one of these best describes the purpose of the Limitations and Subject To Clause section of a deed? a. To indicate that property is being transferred b. To provide evidence that something of value is being exchanged c. To provide a formal description of the item being transferred d. To identify any deed restrictions to which the property is subject

d. To identify any deed restrictions to which the property is subject Yes, this is the purpose of limitations and subject to clause. If it is present in the deed, it tells the grantee the ways that the property can or can't be used.

What is used to convey real estate to a trustee who holds the deed for the beneficiary named in the deed?

deed in trust (deed of trust)

giving a real property is legally binding and given without consideration from the grantee. The grantee can't enforce warranties against the grantor. It wouldn't be a gift if the deed were given with consideration from the grantee...

deed of gift

A limitation on a property title, such as a lien or easement

encumbrances

Which deed conveys real property from a decedent's estate to a buyer?

executor's deed

Which deed states that the grantor disavows any claim of ownership and makes no warranties as to the quality of the title?

quitclaim deed

Which deed is used in bankruptcy proceedings and foreclosures (this document is given to the highest bidder at the foreclosure sale)?

referees deed

Which deed warrants that the grantor received title and there were no encumbrances other than those noted?

special warranty deed

What are seisin, right to convey, against encumbrances, quiet enjoyment, further assurances and warranty?

the six covenants of the warranty deed